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t Vt+trosut Oovtutxrns. Borrower sad Leackr covenant and agree a: follows: .
L )pigtrteat et Moe1M1 M LtMraal. Borrower shall promptly pay when due tba principal of and interest on the
iadebtedrreas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of tad inteteest
as .ay Future Advances secured by this Mortgage.
ltii !ar 7lsarsa tall t~strratret. Subject to applicable law or to a written waiver by Lender, Borrower :ball pay
to Lander on the day monthly installments of principal and interest arc. payable under the Note. until the Note is paid in tup,
a sum (herein "Fuada'~ equal to oaa-twelfth of the yearly tax~~c and assesstrKnts which rosy attain priority over this
Mortgage. and ground rents oa the Property, if any, plus otrc-twelfth of yearlli' premium installments for hazard insurance.
plus or>ttwelfth of yearly premium installments for mortgage inuirance, if any. all as reasonably estimated initially and (roar
lima to limo by Larder oa the basis of assessments and hilh and reasonable estimates thereof.
71re Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
sLte agency (including Lender if Lender a wch an institution). Lender shall apply the Funds to pay said taxes, tssessrnents.
ittwraaoe premiums sad ground rent:. Lender may not charge form holding and applying the Funds. analyzing said account.
or vaifying.arrd compiling said assasmenu and bills. unless Lender pays Borrower interest on the Funds and applicable law
perntip Fender to make such a charge. Borrower and Lender may agree in writing at the time of execution of iha
Mortgage that interest on the Funds shall be paid to Borrower. and ualau such'agrcement is made or applicable law
requires such iaterax to be paid. Lends shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the wms secured -
by this Mortgage.
T< the ataount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. a:sasmeats, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
aadtments, insurance premiums sad ground rents as they fall due. such excess shall be, at Borrower's option. either
promptly repaid to Borrower a credited to Borrower on monthly installments of Funds. If the amount of the Funds
heW by Larder shall not be strfT>~t to pay taxes. asaessrrrertts. insurance premiums and ground rcrrts as they fall due.
Borrower shall pay to Larder any amount necessary to make up the deficiency within 30 days from the date notice a mailed
by Leader bo Borrower requesting payment thereof.
Upon payment in full of all auras secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise scquired by Lender. Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application ns a credit against the sums secured by this Mortgage.
3. A~iieatiaa at Traprnseab. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender tiro in payment of amounts payable to Lender by Borrower -
uader paragraph 2 hereof. then to interest payable oa the Note, then to the principal of the Note. and then to interest and
principal on any Future Advanota.
1. CWuses; Llkas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which ha: priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so brag as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforccement of such lien in,
legal proceedings which operate to prevent the enforcement of the lion or forfeiture of the Property or any part thereof.
S. Hazard Iawraace. Borrower shall keep the improvements now existing or hereafter erected oa the Property insured
against loss by Brc. hazards included within the term "extended coverage", and such other hazards u Lender may require
sad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amotrnt of
li such coverage exceed that amount of coverage required to pay the wms secured Eby this Mortgage.
'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that such approval shall not be unreasonably. withheld. All premiums on insurance policies shall be paid in the manner
j provided under paragraph 2 hereof or, if rat paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
R clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
I and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
j Unless Lender and Borrower otherwise agrce in writing. insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
cwt thereby impaired. If such ratoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid
~ to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for inwrance benefits. Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by •Lender, all right, title and interest of Borrower
in and to any Rrsurance policies and in and to the procceds thereof resulting from damage to the Property prior to tlr~ sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. _
f. PraKrvatioa sad Maiatcoaoc~ of Property; Leaseholds; Condomiuium~ Planned Unit Devdoporeats. Borrower
z shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
-sad shat! comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
E ~ condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs.. if Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain wch
insurance in effut until such time as the requirement for such insurance terminates in accordance with Borrowers and
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